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Customer Perceptions of Service (Chapter 4)

Customer Perceptions of Service (Chapter 4). Customer Satisfaction influencing factors, outcomes satisfaction and loyalty Service Quality dimensions Service Encounters types of encounters sources of pleasure/displeasure Strategies for Influencing Customer Perceptions.

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Customer Perceptions of Service (Chapter 4)

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  1. Customer Perceptions of Service(Chapter 4) • Customer Satisfaction • influencing factors, outcomes • satisfaction and loyalty • Service Quality • dimensions • Service Encounters • types of encounters • sources of pleasure/displeasure • Strategies for Influencing Customer Perceptions ã 2004 - Dwayne D. Gremler

  2. Two Types of Customers • External Customers • Internal Customers ã 2004 - Dwayne D. Gremler

  3. Customer Satisfaction • What is it? • Failure to meet needs and expectations usually results in dissatisfaction. • Satisfaction is thought to be ã 2004 - Dwayne D. Gremler

  4. Customer Satisfaction • satisfaction is thought to be influenced by: • satisfaction can only be assessed following ã 2004 - Dwayne D. Gremler

  5. Outcomes of Customer Satisfaction ã 2004 - Dwayne D. Gremler

  6. Customer Satisfaction and Loyalty in Competitive Industries Figure 4.4 Source: James L. Heskett, W. Earl Sasser, Jr., and Leonard A. Schlesinger, The Service Profit Chain, (New York, NY: The Free Press, 1997), p. 83. ã 2004 - Dwayne D. Gremler

  7. Service Quality • is “the delivery of • service quality dimensions ã 2004 - Dwayne D. Gremler

  8. Reliability Responsiveness Service Quality Assurance Empathy Tangibles Dimensions of Service Quality ã 2004 - Dwayne D. Gremler

  9. Service Quality Dimensions • reliability ( ) • responsiveness ( ) • assurance ( ) • empathy ( ) • tangibles ( ) ã 2004 - Dwayne D. Gremler

  10. The Service Encounter • is the “moment of truth” • types of encounters: • is an opportunity to: • build trust, reinforce quality, increase loyalty ã 2004 - Dwayne D. Gremler

  11. A Service Encounter Cascade for a Hotel Visit Check-In Bellboy Takes to Room Restaurant Meal Request Wake-Up Call Checkout Figure 4.5 ã 2004 - Dwayne D. Gremler

  12. Sources of Pleasure/Displeasure in Service Encounters • Recovery • Adaptability • Spontaneity • Coping ã 2004 - Dwayne D. Gremler

  13. Yes Yes Yes No No No Determining the Sources of Service Encounter Dis/satisfaction Unavailable Slow Other failures Group 1A Group 1B Group 1C Nature of failure? Group 1 “Special needs” Customer preference Customer error Disruptive others Group 2A Group 2B Group 2C Group 2D Is there a service delivery system failure? Total sample Nature of requests/ need? Group 2 Is there an implicit/ explicit request for accomo- dation Group 3 Is there an unpromoted/ unsolicited action by employee? Nature of employee action? Level of attention Unusual action Cultural norms Gestalt Adverse conditions Group 3A Group 3B Group 3C Group 3D Group 3E Source: Mary Jo Bitner, Bernard H. Booms, and Mary Stanfield Tetreault, “The Service Encounter: Diagnosing Favorable and Unfavorable Incidents,” Journal of Marketing (January 1990, pp. 71-84. ã 2004 - Dwayne D. Gremler

  14. The Evidence of Service from theCustomer’s Point of View • Contact employees • Customer him/herself • Other customers • Operational flow of • activities • Steps in process • Flexibility vs. • standard • Technology vs. • human • Tangible • communication • Servicescape • Guarantees • Technology Figure 4.7 ã 2004 - Dwayne D. Gremler

  15. Strategies for Influencing Customer Perceptions • effective • use the • assume ALL ã 2004 - Dwayne D. Gremler

  16. Acknowledge problem Explain causes Apologize Compensate/upgrade Lay out options Take responsibility Ignore customer Blame customer Leave customer to fend for him/herself Downgrade Act as if nothing is wrong Recovery DO DON’T ã 2004 - Dwayne D. Gremler

  17. Recognize the seriousness of the need Acknowledge Anticipate Attempt to accommodate Explain rules/policies Take responsibility Exert effort to accommodate Promise, then fail to follow through Ignore Show unwillingness to try Embarrass the customer Laugh at the customer Avoid responsibility Adaptability DO DON’T ã 2004 - Dwayne D. Gremler

  18. Take time Be attentive Anticipate needs Listen Provide information (even if not asked) Treat customers fairly Show empathy Acknowledge by name Exhibit impatience Ignore Yell/laugh/swear Steal from or cheat a customer Discriminate Treat impersonally Spontaneity DO DON’T ã 2004 - Dwayne D. Gremler

  19. Listen Try to accommodate Explain Let go of the customer Take customer’s dissatisfaction personally Let customer’s dissatisfaction affect others Coping DO DON’T ã 2004 - Dwayne D. Gremler

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